We have all heard of the term bank run… it stands for the phenomenon that occurs when the general public beleives that their deposits are no longer safe in banking institutions and don’t want to be the last guy in the bank when he is informed that “sorry, we are out of cash”. It can also be perpetuated by those with deposits in excess of the FDIC insurance amount who think a bank (or all banks) are about to fail. If the general public believes this is happening then they don’t walk to the bank THEY RUN! Hence, a Bank Run. Well guess what… it is happening in Greece! SEE HERE.
What? You don’t think Greece’s current problems can’t show up here? Maybe and maybe NOT! Our current federal deficit is $1.327 TRILLION! (projected for 2012) California is now running a projected $16 BILLION dollar deficit. The US National Debt is, as of right now, $15,684,474,437 and COUNTING… that is over $15.5 TRILLION! California has debt of $361 BILLION. These numbers are staggering! In order to reign in spending in a meaningfull way we have to go through austerity. Austerity stands for severe cuts to government spending. With all the BS in Washington and California – and by that I mean the partisan politics – no austerity is going to happen soon. That means that this ship is not going to change course soon which will result in higher deficits and higher debt! Eventually we will not be able to pay our creditors. At this point we can point our nukes at our creditors and tell them we are defaulting and ask them what the plan to do it about it (in a Ney York accent of course) or we can attempt to restructure our debt – which is essentially a federal bankruptcy – which is were Greece is now. Yes, I know we can always print our way out of it but then we are screwed too!
I am not a political activist or anything so yes, I have a prepper angle on this story. KEEP CASH IN THE HOUSE! Put it in a safe and not your sock drawer and bolt that safe to the ground. Don’t buy gold, buy USEFULL intangibles – guns, farm equipment, materials. If the S hit the fan and you and I were bartering would you rather have TWO glock 21′s (.45ACP) and 200 rounds OR a small gold disk with some perceived value? The glocks? Well, in my opinion that is the right answer! I can throw pretty hard but not enough for that little disc to be a weapon!
We are headed on a horrible path. If/once austerity hits the US (because we have no choice) the market will crash! No more government contracts propping up corporations – no more government employees making $75k a year shopping at Best Buy – it all CRASHES!
PREP HARD – PREP NOW